Several metro areas in the United States may see declining home prices this year, according to a newly released report.
The property data provider CoreLogic this month published a Market Risk Indicator report that predicts the performance of real estate markets across the country. In their most recent report, the firm noted that five real estate markets are most at risk of seeing home prices decline over the next 12 months.
Of all five markets at risk of decline, four are found in Florida, specifically Palm Bay-Melbourne-Titusville; West Palm Beach-Boca Raton-Delray Beach; Tampa-St. Petersburg-Clearwater; and Deltona-Daytona Beach-Ormond Beach. The fifth market listed by the firm was Atlanta-Sandy Springs-Roswell in Georgia. All five markets had more than 70% chance of seeing home prices decline this year.
Data from CoreLogic's Market Risk Indicator
Where Are Home Prices Projected To Improve?
In contrast, CoreLogic predicted that home prices may improve in at least 20 metro areas in the U.S.. Home prices are also expected to increase between 5.63% and 7.30% year-over-year in these 20 areas:
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Redding CA Metropolitan Statistical Area
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Santa Maria-Santa Barbara CA Metropolitan Statistical Area
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Bremerton-Silverdale WA Metropolitan Statistical Area
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Coeur d'Alene ID Metropolitan Statistical Area
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Fairbanks AK Metropolitan Statistical Area
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Santa Rosa CA Metropolitan Statistical Area
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Corvallis OR Metropolitan Statistical Area
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Merced CA Metropolitan Statistical Area
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Bend-Redmond OR Metropolitan Statistical Area
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Mount Vernon-Anacortes WA Metropolitan Statistical Area
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Grand Junction CO Metropolitan Statistical Area
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Longview WA Metropolitan Statistical Area
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Pocatello ID Metropolitan Statistical Area
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Casper WY Metropolitan Statistical Area
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Walla Walla WA Metropolitan Statistical Area
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Lewiston ID-WA Metropolitan Statistical Area
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Santa Cruz-Watsonville CA Metropolitan Statistical Area
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Prescott AZ Metropolitan Statistical Area
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Lakeland-Winter Haven FL Metropolitan Statistical Area
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Kahului-Wailuku-Lahaina HI Metropolitan Statistical Area
The firm noted that it factored in public real estate records, repeat sales transactions, current home prices, unemployment rates, population growth, and real disposable income per capita in its study.
Home prices rose to historic highs in 2023 following a lack of inventory in the real estate market. In fact, median home prices in last year's third quarter rose above $400,000, according to Forbes Advisor. In addition, home prices also increased after mortgage rates soared above 8% in October after the Federal Reserve hiked interest rates in an effort to lower inflation.
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